[darkbrowneggs]

what are the advantages/disadvantages of being resident here.  I am retired and as you know by now intending to travel.  I will have some capital left over and there is no point putting it in a bank so I am thinking of maybe buying a small cottage/bungalow here (but with room to park the bus) and letting it out when I am not around.


Was thinking possibly holiday type lets, not really sure yet.  But presumably that is all taxable income


What is the situation if I am out of the country for more than say 6 mths at a time?


Also I may get a small place like a barn derelict house with a bit of land which I could do up in France or Spain and which would give me another parking base,


What might be the benefits of being resident here over there?  Anyone got a clue?   

[lachlanandmarcus]

It's a big and complicated subject, I would initially at least keep some sort of a base here, even if just a small flat rented out, to give you options. You can always sell it later.


Holiday let would be taxable yes altho some expenses can be offset as well as mortgage interest (as long as it is provably interest, which normally means an interest only mortgage which makes that easy to show.



Certainly inheritance rules can be very different eg in France than here, so that should be borne in mind. Also try to buy somewhere abroad that you can keep long term if classed as non resident, as otherwise the taxes when you sell are very heavy (keep for 10 years to escape this). Check also any benefits impacts eg whether when you take pension I'm not sure if you get index linked rises as you would in UK.


My parents mainly live in France but chose to stay as UK residents. Because their house isn't rented and they are elderly, their house insurance only lets them go to France for 30 days at a time nowadays, then they have to pop back.

[henchard]

Complex area and you would need specialist advice about residency and where you are domiciled

see


http://www.hmrc.gov.uk/international/residence.htm

My son lives in Spain and had Inheritance Tax Issues; when various questions were put to the senior partner (about where liability might fall in different scenarios) of a major UK accountancy firm his answer was

'I've got no idea and it sounds like an exam question in some difficult finals paper'; even they don't now the rules in complex situations as they don't know all the rules in the other country concerned. i.e. he would need to take advice from both UK and Spanish tax experts

[darkbrowneggs]

I LOVE this forum...... 


And I had to laugh at
'I've got no idea and it sounds like an exam question in some difficult finals paper'; 


Many thanks for the replies, any other input gratefully accepted


I was up till about 2 this morning looking at property in southern Spain


My current thinking is


Small holiday let in UK


Barn to do up somewhere round La Rochelle in France


Dilapidated "farmhouse" not too far from Almeria for ferry to North Africa


For someone who has never even been in a motorhome or caravan (other than step inside a few at the Malvern Show last month)  and hasnt been abroad since the mid 80's am I soundly overly ambitious?   

[happygolucky]

You are making me excited as well  , what wonderful prospects...I have no idea of the in's and outs but we do have a friend who let their own home and lives in New Zealand half the year, she has very bad issues, rent not paid, place trashed etc  but at least you are selling, although a holiday let is a different matter, so very exciting, almost wish I was doing it but not quite got the guts (or the money)

[Bionic]

Sue, I can't help with any of the rules and regs but if you feel adventurous then go for it. If you get lonely I am sure there will be plenty of taser's only too keen to keep you company for a bit


What an exciting time for you.

[Rosemary]

I'm an old stick in the mud so I'd keep it simple - a small home here and the van for travelling. Simples.

[shygirl]

im just wondering why you want a holiday let as opposed to a short term (6mth) lease in the uk? it would be a higher income per month but would also mean cleaning, advertising etc and i expect council tax / business rates as its furnished. a short term lease may be less hassle if unless you pay a management company.

if you need a parking space in coastal aberdeenshire, you are welcome here. our harbour does waterside parking for free too.

[lachlanandmarcus]

I LOVE this forum...... 

And I had to laugh at
'I've got no idea and it sounds like an exam question in some difficult finals paper'; 

Many thanks for the replies, any other input gratefully accepted

I was up till about 2 this morning looking at property in southern Spain

My current thinking is

Small holiday let in UK

Barn to do up somewhere round La Rochelle in France

Dilapidated "farmhouse" not too far from Almeria for ferry to North Africa

For someone who has never even been in a motorhome or caravan (other than step inside a few at the Malvern Show last month)  and hasnt been abroad since the mid 80's am I soundly overly ambitious?   

My parents are about an hour (perhaps 45 mins) from La Rochelle, and about the same from Bordeaux, in the Charente. Lovely area! And great for growing veg and fruit, Mums tomatoes this summer some of them are over a kilo each :-O)


Think about the winter tho, it can be quite fierce winds/storms in winter, so a lovely barn which is great in summer would need similar work to insulate as a UK barn if you wanted to use it year round, my parents tend to spend Dec to Feb in UK house as it is warmed as better insulated.


I would rent somewhere abroad before buying as it will make viewings much easier and also you might find you don't like one aspect of the area/ living in that country etc first, ESP if you haven't been there for a long time.


<But I def think you should go for it!>

[john and helen]

personally i would buy a small house over here, and rent it out through an agent...
if you have traveling in mind..just travel, don't buy

buying abroad is easy..selling is a pain... i should of had my money two weeks ago,,,still waiting for the french ******** to pull their fingers out 

[happygolucky]

We keep hearing horror stories about houses that people let out  too, I would either buy a holiday let with storage in a place maybe on a serviced site for security  or short term rent but not sure  of the ins and outs re residency....I agree, any property is a tie and could be costly in the long run with regards to maintenance etc..I think you do  need some form of permanent address that you are in at least 6 mths of the year...BUT, that could be a friend or a relation I suppose...interested to find out if any one has temp residence in UK on here!!

[darkbrowneggs]

im just wondering why you want a holiday let as opposed to a short term (6mth) lease in the uk? it would be a higher income per month but would also mean cleaning, advertising etc and i expect council tax / business rates as its furnished. a short term lease may be less hassle if unless you pay a management company.

if you need a parking space in coastal aberdeenshire, you are welcome here. our harbour does waterside parking for free too.

Yes good points there shygirl.  Any input is useful when considering what I should do.  And I love the idea of parking up near you,  I am still keen on getting to see the Northern Lights


Are they best in Autumn Winter or Spring and any thoughts on best place to go.  My current thinking was North Uist but then I read Lindesfarne was good.  I have never been further north than Wigan 


~~~~~~~~~~~~~~~~~


The reason for looking to buy a property is both for getting a permanent address somewhere so I am still some sort of legal resident.  My brother went to Papua New Guinea for 2 years and though he had been a resident home owner in the UK for years before he went when he came back he found it difficult to get a phone, accounts and lots of other stuff as he hadnt proof of recent residence


The other reason is that if I have any spare money I am anticipating a period of very high inflation (owing to govt fiscal easing  )  and I dont want cash hanging around in a bank, so unless anyone has better ideas then property seems the way to go.

[Backinwellies]

I rented a house for 10 years with no horror stories (remember there is 1000's houses rented and you only hear about the few who do have horror stories ........... buy and rent through an agency who will be responsible for the state of your house and dealing with tenents.    It can be your main residence if you return and live there for a while so you can sell without capital gains tax......... a holiday let will incure capital gains when sold.

Have a great adventure!!

[darkbrowneggs]

All good advice - many thanks and keep it coming   

[ellied]

My plan until this year was to sell up the stock and the holding, buy somewhere in a tourist area (Trossachs or East Neuk villages) that I'd actually like to stay in occasionally but mainly let out through an agent as a holiday let all summer and a 6 month shorthold tenancy in winters IF I didn't want or need it myself.  I'd also have the option to stay in it any unbooked weeks obviously at other times but my thought was that once released from the ties of responsibility and with a property bought outright in Scotland, the remainder would be to live off in some form, be it another (BTL mortgaged) property (preferred option at the time) or other investments.

I looked at what I thought I wanted, a solid investment and home base in Scotland plus freedom to go travelling globally doing whatever I could/wanted/had chance to do.  Volunteering placements that don't charge immense fees but provide basic accommodation, long distance walks/treks eg the Camino in Spain, visiting relatives and friends I've said no to for years due to "feeding the animals" or "work" or both.  But I wanted freedom without a hassle hence the agent and hence not buying abroad, despite some of the wishlist being travel abroad.

I thought if I went different places each year, experienced the joys of travel, then at some point I'd want to sit for a few months in one place and write or do crafts or rest, but not leave it empty so make it the business paying UK tax and my 6 month official residence too.  I'd also not want to lose access to NHS as I get older, nor my resident status.  Making a mistake with the overseas stuff could be costly in more than financial sense, limited English speaking neighbours can make life tough if you don't get on, selling up is harder than buying, healthcare and other government systems being unfamiliar aswell as payments/insurances etc.  To make life easier, don't add new bureaucracies in foreign languages, that was my primary thought!

I haven't sold the stock obviously, market isn't right but I'm still reducing the ponies as steadily as I can find the right kind of buyer at a decent price and anything I breed now I will advertise, tho I reckon I may still have to find "fosterhomes" for some of the older/crocky/favourite ponies while I'm away for the foreseeable at least, I can't sell my OAPs who might go this winter or last another 10.. but the capital and reduced costs and time out would hopefully pay a minimum grazing fee for summer absences if nothing else.  And I am also thinking rent the holding out for a trial run of "freedom" before I sell up completely, in case all I needed was a break to get fit and well again.. 

Not your scenario but maybe there are a couple useful points in there somewhere!